Countries to have more say in their deficit and debt reductions in reformed EU Stability and Growth Pact proposal – FT

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The Financial Times reports that the European Commission wants to give its member states more time ‘to curb their debts and create space for public investment as part of a major overhaul of the EU’s deficit rules.’

According to the report, the Commission ‘will table a proposal at the end of October to reform the Stability and Growth Pact.’

The report highlights how this new reform will see that the reformed Stability and Growth Pact would work out multiyear, country-specific plans with capitals for getting their debt burdens under control.

“The plans, which are still being discussed between the commission and capitals and have yet to be finalised, would simplify the EU’s hugely complex fiscal rules while tightening enforcement”, adds the report.

A new approach is being discussed due to pressure by EU member states before full enforcement of the Stability and Growth Pact resumes in 2024 following a suspension triggered in 2020 by the pandemic.

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